Rating agency A.M. Best has affirmed the “A” (Excellent) financial strength rating and the “a” long-term issuer credit ratings of the key life/health subsidiaries, health maintenance organizations and New Zealand and European insurance companies of Cigna Corporation.
The rating action follows the completion of Cigna’s acquisition of Express Scripts. The outlook of these credit ratings is stable.
According to A.M. Best, the ratings of Cigna Life & Health Group reflect its “strong” balance sheet strength, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management. It also highlighted Cigna’s intention to accelerate de-leveraging from its strong earnings from its insurance entities and its solid non-regulated earnings from Express Scripts.
Meanwhile, the ratings of Cigna Life Insurance New Zealand reflect its “very strong” balance sheet strength, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
A.M. Best expects Cigna group to provide capital support to the subsidiary in the event that it is unable to maintain appropriate capital adequacy.
